Bitcoin prices picked up on Wednesday, reaching an intraday peak of about $ 6,983, but this move did not improve the bearish outlook for the rest of the month.
The Bitcoin-dollar daily chart saw the formation of two extremely declining patterns: Death Cross and Double Top. The first occurred after bitcoin's short-term moving average fell below its long-term moving average. By the way, the latter appeared when the price peaked twice in a row with a moderate decline between them.
The chart confirmed the partial formation of Double Top after traders' prices failed to exceed the $ 6,900 resistance level in two weeks. Unsure of how the Bitcoin market would play against the global market sales from Coronavirus, they explicitly purged their long positions at the local top to get short-term profits.
Bitcoin-dollar exchange rate corrected more than $ 6,983 during the European morning session. The withdrawal increased the possibility of a full-fledged Double Top endorsement, now seeing a confirmation when the price reaches the $ 5,657 Double Top Support as shown in the table above.
As for Death Cross, the formation of the technical indicator last year caused traders to drop the bitcoin price by 39 percent. In 2018, the cryptocurrency dropped almost 55 percent after the downward signal flashed in March.
Bulls Don't Care
While technical indicators print a terrible outlook for bitcoin, their long-term supporters find a bullish case in macroeconomic narratives.
The rapid spread of the Coronavirus pandemic has erased about $ 4 trillion from the US stock exchange since the peak of February, According to CBS News. The Federal Reserve and the U.S. government have taken a joint action to improve the outlook of the market. Their solution: to lower interest rates close to zero, to start bond buying programs and inject 2 trillion dollars into the banking system.
Changpeng Zhao, chief of the world's leading crypto exchange Binance, finished We see Fed's emergency incentive program as good news for bitcoin. The famous entrepreneur stated that some parts of the new liquidity can enter the crypto money market and its total valuation may be higher.
“While you're used to talking about trillions, a modest bitcoin market value of $ 2 trillion It will set 1 BTC for $ 100,000. Now it's not hard to imagine the number, is it? Since most BTCs are not for sale (HODLers), we only need a small section of $ 2 to purchase to reach. "
Based on the comments of Mr. Zhao, Michael Novogratz, a billionaire investor who supervised the crypto merchant bank Galaxy Digital, said that the predecessors of "Millenials and Gen Z" would buy bitcoin to protect them from hundreds of trillion dollars of debt.
Millennials and Gen Z will take over all these obligations, written by the +75 crowd responsible today. It really just doesn't seem. Boomers will go down as the next generation that went bankrupt in the USA. Maybe why young people love $ BTC.
– Michael Novogratz @novogratz photos and videos on Instagram March 25, 2020
As of the writing of this article, the BTC / USD exchange rate traded close to $ 6,500, down almost 3.6% from the intraday high. Meanwhile, the general cryptocurrency market fell to $ 6.36 billion during the day.